Whether you’re already in the winner’s circle, on your way to profitability, or still struggling along the way, it is important to have an idea or plan for sustaining and accelerating high-performance results and profitability.

But as expected, at one time or another every company gets off track.

When this happens to successful companies, however, they recognize the problems and get back on track quickly.

Watch for these basic trouble signs when you’re working to achieve and sustain operational excellence:

Hazy understanding of your cost structure, including what drives expense in the business and who the owners are for each cost component on the P&L

No effective RCA/ICA process in place

No plan for automation to increase productivity and reduce costs by eliminating human error

Expenses and overhead that are out of control

Budget owners who can’t factually explain deviation from plan and who don’t proactively take action to realize the plan

What are the solutions for these operational trouble points that will help you accelerate profitability to new levels? …Click to read more »

A thorough understanding of a company’s cost structure and the use of continuous process improvement provide the foundation for many business decisions.

Without accurate cost information it’s impossible to set optimal prices, forecast performance, isolate areas that negatively impact cash flow, determine what to stop doing, identify what to automate, and decide how best to manage costs.

It’s also critical to undertand cost drivers in order to grow a profitable business while investing in areas that improve profitability and de-investing in ones that don’t.

Operational Excellence

Operational excellence is how margins are maintained. It is about efficiency, effectiveness, and doing the right things right the first time.

While sales are essential to profitability because they fuel business growth, when sales fall short of the top of the line, or there is pricing pressure, most companies must cut costs to maintain margins and stay afloat.

Unfortunately that often means eliminating people. It’s best to keep a constant eye on costs instead of slashing payroll as a last-ditch effort to make ends meet. …Click to read more »